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The Palm Beach Post has lately come out with some editorials that are definitely controversial. The first one was the heights in our downtown. Andrew Marra, Lake Worth resident and PB Post editor, thinks higher buildings are cool. Ask Boynton Beach. They admit they made a mistake on heights.
The next editorial of his was on our Lake Worth Utilities. He says that the city is irresponsible for not pursing FPL's offhanded and strategically placed comment when it stated: "We would be open to a conversation about a potential acquisition of the city’s electric system” when it was answering our RFP to be our power provider. In order to even think about selling this huge asset, so many studies would need to take place before we ever even thought about sitting down at the table to seriously discuss it. The public would eventually have to be convinced that it was in their best interest. It belongs to us. We would have to vote on it. There would be no choice of this visionary commission to do anything else but put it on the ballot. This entire process would take years.
We have given notice to FMPA and will be out of that contract by the end of next year. Right now we are negotiating with another power supplier that will reduce our cost at an estimated 25%. That might be all it takes to be arm and arm with FPL's rates as FPL recently asked the PSC for a $690 million dollar rate increase. We need to evaluate our Utility after we have a new energy provider that has been in place for a few years. Anything else would be irresponsible. Don't forget, it was Scott Maxwell who made the motion to contract with FMPA in the first place when he was commissioner the first time around. As it turns out, this was a costly decision.
Of course, FPL would like us to hand over our Utility for nickels and dimes. And of course this giant corporation wants to be more of a monopoly than it already is. The CEO, Lew Hay, makes more than any person in Palm Beach County, probably all of Florida, who knows?--$22 million a year. FPL documents submitted to the Public Service Commission and obtained by the Tampa Bay Times/Herald show
that FPL had budgeted about $40.5 million for 42 executive salary packages. If the company's request for a rate increase is approved, FPL will pay those officials $41.5 million in salary, stock options and incentive pay, the documents show. Public companies are all about corporate executive greed. I worked for two of them and saw it happen daily. It almost makes me want to go join the Occupy Movement for this one point alone.
If rates do not improve after a new energy provider has been in place for two years, then I would like to see all of the numbers in order to even consider selling our number one asset. And think about this--if we got millions, that money would all disappear within a few years like money always does around here. We can't even fix a pothole or clean the trash off the streets. Lake Worth Beach indeed.
15 comments:
Why would I care if we sold the electric utility for pennies, if I got FP&L rates?
Our current CM ran Lantana at half our millage tax rate and did it without an electric utility. Why can't he do it in Lake Worth?
It couldn't be any worse. What do we have to lose? I don't hear of any municipalities complaining about FP&L the way we complain about ours.
Did you read what I wrote? I know that one's attention span is about 30 seconds.
I just hope that you are not a LW city commissioner. :)
We've had 30 years of studies Lynn. Every month that we receive an electric bill that is one of the highest in the nation is part of the study and evidence is clear... SELL TO FPL. I did not and would never have voted for that (___ fill in the blank) Ramiccio, but he at least got one thing right. SELL TO FPL. You know this is one referendum that would pass by a very wide margin.
Before you can sell, you have to know what something is worth.
30 years of studies are meaningless. Ramiccio wanting to sell our Utility was an irresponsible campaign slogan/rally as he had NO CLUE as to what the value is on the market or the value it is to LW residents.
I'm not for giving our assets away.
If we enter into a new contract with a new power provider we will be locked in for a number of years. Getting out of these deals is not easy. We had to give our current provider 5 years notice and it's costing us more than half a million dollars to hire experts to help us get out and find a new provider. Now is the time to explore selling if we can get FPL to pay a fair price. Getting rid of the utility would make our city equal to all surrounding cities when it comes to electric rates. That is one of the most important things we can do to get our tax base back. It will also stop our commissioners from raping us with rate increases to pay for things we can't afford. I say lets start talking to FPL now.
Mr. Rinaldi--you do realize that any price FPL would pay to Lake Wroth would go right back on the LW rate payers by FPL don't you?
Anonymous, you are making a statement that has no factual backup. Could you please tell me how FPL will charge only Lake Worth customers more for power to cover the cost of the purchase. They are a regulated utility that needs approval fo all rate increases. We also ahve the right to contract that away.
To anonymous at 11:06 AM,
There’s a lot of misinformation that’s been going around about what could happen if we got out of a business we are not good at; “our electric utility”. The myth that whatever FP&L might pay LW would all have to paid back to FP&L directly from our ratepayers; that statement is false. The PSC (Public Service Commission) would have to approve any sale of a municipal utility to a public utility company. If the public company can’t show the PSC that it can recoup its acquisition cost in a certain period of time with improved efficiencies, better technologies and economies of scale, without increasing rates to their customer, the sale would not be approved. Call the PSC and find out for yourself, call FP&L and ask them. The only time that a municipal owned utility customer base would have to payback acquisition cost would be if the municipal utility was bankrupt. That did happen a few years ago over in Sebring. We all know our utility is certainly not bankrupt.
Per the public Service Commission, FPL can recapture its investment cost by charging the rate payers of Lake Worth. They can NOT spread out the cost of this purchase to any other city or all their rate payers. That is what I understand.
You don't think that they are going to "eat" this cost do you?
If anyone knows anything to the contrary, please post.
Thank you Greg for your explanation. I was typing my comment above when you had already sent yours forward. This should clear this subject up.
So if we don't have to pay them back the only real issue is what is the value of our utility and will they pay us a fair price for it. I think we would all like to know what it's worth.
I just called the PSC and that's a bunch of horse.
I called too and Greg is right.
hahaha. Someone ask the city manager.
Our assets in this city are our residents and real estate not a utility that we are unable and unqualified to run. Let the experts -FPL do what they do best. This will greatly improve the perception and reality of this city! This will in turn lead to more people wanting to live here and increased property values and rents. These tax revenues are what the city should run on not utility revenues Period!
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